In: Accounting
As an IT intern at Game Technology, you often assist analysts with feasibility studies. The work can include intense fact-finding and tight deadlines. You decide to add a new section to your journal to describe the four different types of feasibility. In your journal, you want to include a definition of each feasibility type, and a sample statement that would indicate a lack of feasibility. For example:
The hardware has limited capacity for future needs.
Our users will resist the new system because it is the third change in 18 months.
The project will take too long to pay for itself.
Development cannot begin until next year, which is too late.
You also want to learn more about project constraints. You know that constraints can be grouped into various categories: present vs. future, internal vs. external, and mandatory vs. desirable. You plan to use a grid chart like the one in Figure 2-15 on page 60 from text book to show the constraints.
This morning you received a message from Felesia Stukes, the IT director. She is sending you a list of planning statements and she wants you to decide which type of feasibility applies. She also wants you to prepare a diagram that will show a list of constraints.
Required:
a. Reply to Felesia and indicate the type of feasibility for each of the following statements:
i. Based on the future cost of support and maintenance, Total Cost Ownership (TCO) will be very high.
ii. The network will not be ready until next year, which might be too late.
iii. Expensive training will be required.
iv. The current system is well liked and effective, and users see no need for change.
v. The hardware is unreliable and will not integrate with other company systems.
vi. The new system will cause a workforce reduction, and employees are very concerned.
vii. The platform does not have capacity for future needs, and cannot be expanded.
viii. The project does not meet the company policy for acceptable return on investment.
ix. The projected benefits do not outweigh the estimated costs.
x. The software will not be available until May, and that will cause an unacceptable delay. FBA/PAS3153/APRIL20 CONFIDENTIAL/
3 b. Felesia also wants to see a grid chart that will show the following constraints:
i. Management told all departments to include “green” goals in next year’s plan.
ii. The inventory system would be more effective if we add Radio Frequency Identification (RFID) capability next year.
iii. Management just announced a change in travel policy: “No more first-class air travel!”
iv. Effective immediately, our products must meet all government standards.
Answer:
a.
OPERATIONAL FEASIBILITY Operational feasibility ensures that a proposed system will be used effectively after it has been developed. If users have difficulty with the new system, it will not produce the expected benefits. |
Example: A project that involves the transfer of business intelligence between your company and a strategic business partner. The users at the partner company have complained that the new system would represent the third change in 18 months for them, and they are not very enthusiastic about the upgrade. |
TECHNICAL FEASIBILITY Technical feasibility requires the resources needed to develop, purchase, install, and operate the system. A project lacks technical feasibility if the software, hardware, or network communications cannot support expansion and future needs. |
Example: A firm is evaluating a turnkey proposal for a new system from an outside vendor. The design team determines the proprietary hardware will not be compatible with other products, and the company will be locked into a system that cannot easily be upgraded. |
ECONOMIC FEASIBILITY Economic feasibility means that the projected benefits of the proposed system outweigh the total cost of ownership (TCO), which includes ongoing support and maintenance costs, as well as acquisition costs. The project would demonstrate a lack of economic feasibility if it took too long to pay for itself. |
Example: A project involves the development of a complex enterprise-wide Human Resources system. The cost - benefit analysis indicates that the project will not meet the long-term financial goals set by senior management. |
SCHEDULE FEASIBILITY Schedule feasibility means that a project can be implemented in an acceptable time frame. The project would demonstrate a lack of schedule feasibility if the development was delayed by an amount deemed unacceptable to key stakeholders. |
Example: The sales team needs an upgrade for the customer management system as soon as possible to meet a spike in customer activity that will result from the acquisition of a new product line. |
b.